The blue-chip Dow Jones Industrial Average closed at a record high as a subdued inflation report stoked hopes for more Federal Reserve rate cuts, which also boosted small-cap stocks and enabled Wall Street's three main indexes to post weekly gains.

The S&P 500 was headed for its 42 record close of the year on Thursday, pushed higher by a surge in stocks of companies that make materials used to support manufacturing. The S&P 500 was up 19 points, or 0.3%, near 5,741, at last check.

The blue-chip Dow Jones Industrial Average closed at a record high as a subdued inflation report stoked hopes for more Federal Reserve rate cuts, which also boosted small-cap stocks and enabled Wall Street's three main indices to post weekly gains.

The blue-chip Dow Jones Industrial Average closed at a record high on Friday as investors welcomed a subdued inflation report that also lifted small-cap stocks which stand to benefit from more interest rates cuts by the Federal Reserve.

By Caroline Valetkevitch NEW YORK (Reuters) -Treasury yields and the dollar fell while the Dow registered a record closing high on Friday as a subdued U.S. inflation report lifted expectations of an outsized interest rate cut at the Federal Reserve's November policy meeting.

The Dow Jones Industrial Average ($DIA) closed at an all-time high after new data showed that inflation in the U.S. continues to trend down

Major stock averages finished mixed Friday, with the Dow Jones Industrial Average (DJI) posting a new record closing high after the Fed's preferred inflation measure cooled further in August, while tech stocks weighed on Wall Street's other key indexes.